Gold’s been hitting new highs and a few gold and silver stocks have been running up to higher highs along with it. It’s hard to say with certainty what the reason is. Inflation concerns are the first thing that come to the mind of an analyst. Or, considering the strangeness in Washington, D. C. these days, the concern might be fear.
Whatever the case, precious metals and the companies that mine for them are having a decent run.
Gold Stocks and 1 Silver Stock: New Highs
SPDR Gold Shares:
This is the NYSE-traded exchange traded fund that reflects movements in the price of gold. It’s been having a good run: from the early June 2024 low of $212 to the present $264 amounts to a 19.7% return from then to now. Note that both the 50-day and the 200-day moving averages are in up trends.
ASA Gold and Precious Metals:
The price in late January broke out above the October 2024 resistance of $22.75. It’s kicked off February with even higher highs. Both the 50-day and the 200-day moving averages are trending upward.
The South African-founded miner is now domiciled in Bermuda and has a market cap of $477 million. The price-earnings ratio is 7.61 and the stock trades at 1.12 times its book value. ASA in November 2024 paid a .16% dividend.
Franco Nevada:
A new closing high in February follows the late January peak above the October resistance, shown by the red dotted line. The 50-day moving average has just crossed above the 200-day moving average, a positive sign.
Headquartered in Toronto, the company has a market cap of $27 billion. This year’s earnings are down by 13.15%. Franco Nevada has no debt, long-term or otherwise. The mining firm pays a 1.03% dividend.
Kinross Gold:
The price broke out above the former October and early January resistance levels and took off to new highs. The 50-day moving average has turned upward. The 200-day moving average moves higher steadily.
This Canadian miner has a market cap of $14.51 billion. Earnings this year are up by 71%. The price-earnings ratio is 19.74. The debt-to-equity ratio is .26. Kinross Gold pays a dividend of 1.02%.
Discovery Silver:
The new high came in late January and the stock goes higher since then. That’s a nice breakout above the previous resistance from July 2024 at just under $1.00. Typically, I don’t post former penny stocks but this one seems to be at least worth noting.
This is an OTC stock (also trades on The Toronto Stock Exchange) with an average daily volume of 237,000 shares. Market cap is $433 million. According to the company website, Discovery has “high quality gold producing assets in Canada” and “the world’s largest undeveloped silver deposit in Mexico.”
All of the above precious metals stocks are outperforming the two industry majors, Newmont Mining and Barrick Gold, which are trading better lately but have yet to make it up to new 52-week highs.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
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